According to the latest figures released, the total U. S. consumer spending has risen by just 0.1 per cent during the month of July this year.

The slow growth in consumer spending may be mainly due to spending cuts that affected salaries of federal officials. The slow growth indicates that the economy has started the third quarter with stable growth. The Commerce Department data released on Friday showed that consumer spending rose just 0.1 per cent during the month from the previous month.

The growth is lower than 0.6 per cent growth recorded during the month of June. The data showed that consumers reduced spending on manufactured goods such as cars and appliances while the spending on services remained unchanged during the month. The total income increased 0.1 per cent in July compared to a growth of 0.3 per cent recorded during June. The data also showed that overall wages and salaries fell $21.8 billion from June, out of which a third was due to federal spending cuts.

The Federal Reserve will consider the consumer spending and income data at its September meeting when it determines whether to continue its stimulus package.